All Forum Posts by: Jeremy Bourgeois

Hey Andrew,

What are your overall goals with real estate investing? Do you have an area you plan on investing in? When I was in the military last year, I didn't realize how much I could really do from my barracks room. Have you considered saving some money, investing it into a list, and calling everyone on that list? Or building a team to find you deals and finance them in the area you are looking in?

What are the potential benefits to switching for you? A lower interest rate? Are you trying to use a USDA loan again?

Maybe try to tackle the overall reason that you are trying to switch loans and you will find your answer

How is everyone faring? Have you seen a scale back in profit? What changes are you implementing in your business to keep it running and profitable?

Those are the kinds of things that will come back to bite you...

What does this really do? Creates a terrible relationship and ruins your entire reputation. At the end of the day, you are providing a service to your tenants, and rely on them just as much as they rely on you.

@Jared Maches Hey Jared! What kind of properties are you looking for? In my experience, the properties that require no sweat equity or value add can cashflow less, but not always! If you have any questions about investing in Northeastern Connecticut, don't hesitate to reach out.

Best of luck to you!

Investment Info:

Single-family residence wholesale investment in Putnam.

Purchase price: $37,750
Cash invested: $100

Contributors:
Marco Epifani

SFR on about 2 acres of land located just a few minutes from downtown Putnam, a rapidly appreciating city in Northeastern CT. Needs about $90,000 worth of work. Under contract for $37,750. With assignment fee, purchase price for the end buyer is $45,000. After repair value for the property is $260,000 conservatively. Gross profit is over $120,000. Message me for further details. I have more pictures, a detailed scope of work, and a list of comps used for the ARV.

Through a marketing campaign to landlords with evictions in the past 6 months, I met with a motivated seller who is trying to get rid of his mobile home. He was completely unaware that his property had gone through an eviction. And he explained that he had tried to sell 2 years ago, but the buyers never finished the paperwork, moved into the home, and ghosted him. He still pays taxes on it, so he wants to get rid of it for cheap. I should be able to get it for $1,000. I wouldn't be able to see the inside of it, as it is currently occupied. And I would need to either give the people living there cash for keys, or evict them. The mobile home was assembled in 1974 and is a 2 bed 1 bath.

My question is, would this just be a waste of time and money?

I don't know much about mobile home investing, but can you legally rent out a mobile home? 

To me, it seems like a screaming deal. Buy a mobile home for $1,000, rent it for $500 a month (speculative number) and make my money back in just a few months time. But, once again, I am completely inexperienced in mobile home investing.

Hello everyone,

Over the past few months, myself and my business partner/friend @Bruno Maluf have been working through some of the processes of our first house hack. I think this particular deal is very unique in the way that we have made it work. Also as a disclosure, I am not providing advice for people who would like to do the same in the future, as we have not yet had the experience to provide such good advice. I am merely sharing some perspective and shedding some light on one of the many ways you can structure a deal and set a plan.

So, to give some backstory; Myself and Bruno have been best friends for about 15 years now. This past year I was away on the other side of the country in the military while Bruno was back home. We both wanted to make our money work for us and invest in real estate as soon as possible. And we both agreed that house hacking was the best way to start. As we were educating ourselves and building wealth to invest with, (which for my part did take a year. I would recommend taking time to educate yourself and building some form of capital before you jump in) Bruno was actively searching for the right deal to house hack. A few months ago, he had found a great off market deal through our friend and realtor @Marco Epifani, but wasn't able to get the financing for it. And that's where the partnership was born. The reason I was okay with this while being on the other side of the country and not actually seeing the property for myself in person was because I have a lot of trust and faith in my friend to do his due diligence. Once again, I am not recommending this approach, but in this case it was a win-win for the both of us. He gets a great deal without as much money out of pocket, I get a great deal and have a property ready for investing as soon as I moved across the country. And we both get to learn a lot about the business together. Everything is shared 50-50 between the both of us.

So, here's a quick breakdown of the numbers on the property:

Description: Fourplex located in a central up and coming area of town. 10 beds total, 4 full baths total. Excellent tenants inherited who take good care of the property. Nothing major on the inspection report; a few thousand dollars to fix minor repairs and keep the property in great shape. Updated interior and exterior.

Appraised value: 245k on the second appraisal (the first appraisal was at 214k, since the appraiser was covering her tracks for a previous low appraisal on the same property some years back) This appraisal is still low, since there are no good comparable properties in the area. I would say it's more like 275k-300k.

Purchase price: 252k

Down payment with closing costs: 22k (5% down conventional loan)

Monthly PITI: $1,900 ($1,700 once 20% is paid down and PMI drops off)

Monthly utilities: $300

Monthly CapEx/Repairs allowance: $400

Monthly rent while house hacking: $2,400

Monthly rent after house hacking: $3,100

Monthly rent after rents are brought to market value: $4,000

We should be closing on the property in just over a week! Then it's on to finding the next deal while actively managing the first rental. More than anything else, both of us are excited to get into the business so we can learn the ins and outs and scale our capital.

@John Oh All technical and detail advice aside, I think as long as you have the commitment and the focus to do what you set your mind to, everything will work itself out. Certain character traits and the right mindset can take you places that others without the same drive and energy won't be able to go.

Best of luck to you

@Nathan Killebrew good point. I’m just not sure how feasible that would be when I have no way of being in the area for the next few months as it’s on the other side of the country